Jupiter's Ehrmann: China's inflation will take months to reverse

China will take several months to fully reverse the rising inflation trend witnessed in the second half of 2010, says Jupiter's Philip Ehrmann.

Ehrmann, manager of the China and China Sustainable Growth funds, says this means equity markets are likely to struggle, especially in the face of any adverse news. "I aim to take advantage of any market weakness that may occur over the next few months," he says. China revealed its GDP for last year was up 10.3%, although inflation had eased in December at 4.6%, falling from a 28-month high. Towards the end of last year, China's inflation rose mostly due to higher food prices and as a result of short-term seasonal influences. To relieve price pressures, the government made availabl...